What is the limitation of using point estimates of exchange rates in the capital budgeting analysis? List

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What is the limitation of using point estimates of exchange rates in the capital budgeting analysis?

List the various techniques for adjusting risk in multinational capital budgeting. Describe any advantages or disadvantages of each technique.

Explain how simulation can be used in multinational capital budgeting. What can it do that other risk adjustment techniques cannot?


Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...
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